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True-Up Billing

The True-Up option is the ability to use more licenses than you own. It can be configured with the License Vault on which licenses are located in the corresponding team.

The True-Up option is designed for customers with a significant number of licenses and a growing user base to seamlessly accommodate new users on the fly, without the need to initiate individual transactions for each request.

In addition to having the benefit of less purchasing overhead, the customer is ensured they are only paying for licensing that is active and in use. Temporary spikes in usage are fulfilled with smaller, overage fees, as opposed to a full annual subscription, which may or may not be in use full time.

Requirements

True-Up has some environmental requirements:

  • License Vault set up and configured;

  • At least 50 annual subscriptions must be purchased and tied to a date, which is 12 months from the True-Up start date.

Configurations

True-Up configuration consists of two main parameters:

  • True-Up Limit — the amount of available overage. It can be a percentage like 125% or 150%. True-Up Limit spreads to all products in a subscription pack and cannot be different within one subscription pack.

  • True-Up Period — the time interval between the subscription invoices. If you have a License Server under the Enterprise Plan, you can choose whether to be billed each Month, Quarter, or Year. Otherwise, you will be billed each month. Tied to a calendar period.

The number of licenses under the True-Up could be increased during the subscription period. However, you cannot remove licenses from the True-Up Billing. If you have an exceptional case, contact your sales representative.

Reports

You can get the License Usage reports for licenses under the True-Up Billing. If you enabled True-Up only for some products, you have a separate report for True-Up Billing and non True-Up. From the License Usage report, you can find out the following user information.

  • OS user name;

  • IP address;

  • Product consumed a license.

True-Up licenses report

Overage invoicing

The overage invoicing procedure becomes at the end of each True-Up Period only if you overused licenses. If you used only prepaid licenses, there would be no overage invoicing.

There are Default and True Forward invoicing schemes for license overuse. At the end of the True-Up Billing Period, the customer can choose: whether to pay for overuse or add overused licenses to the main prepaid License Pool.

Default

At the end of the True-Up period, the customer pays extra monthly subscription billings.

  1. The True-Up Period is divided into calendar months. It can be divided even more if during a specific month there were changes in the number of prepaid subscriptions covered with True-Up.

  2. In each month the maximum number of overused licenses is calculated for each covered product. The billing for each month is calculated from maximum overuse.

  3. The final billing is formed from the sum of all monthly billings.

The following image demonstrates the example. The customer overused 19 IntelliJ IDEA Ultimate subscriptions in January, 17 — in February, and 29 — in March. So the total price is calculated from the sum of each month: (19 + 17 + 29) * $49.90.

Billing example

True Forward

True Forward is one more option for invoicing. It allows transforming overuse into regular prepaid subscriptions. At the end of the billing period, you receive the statistics and can choose the True Forward option. Here’s the process:

  1. Select the number of subscriptions to be added to the prepaid subscriptions pool.

  2. Get invoiced for a selected number of subscriptions with their price adjusted to the co-term date.

This option can be used on a per-product basis. To cover the overage, the minimum quantity of subscriptions is limited by a total number of overage days adjusted to the co-term date. Maximum quantity is not limited. There's a price preview and its PDF export available.

At the end of the True-Up Period, you receive the True-Up Subscription Payment report similar to the following. In this example, the True Forward option is selected and 98 subscriptions will be co-termed.

True Forward example
Last modified: 21 June 2022